Query regarding th capitalisation of fixed assets
This query is : Resolved
UMESH AHIR
(Querist)
11 June 2012
Dear sir,
i'm doing audit of our client & during the audit I've got the point that they incurred the an amt.Rs130000 towards repairs& maintenance of factory building, instead of capitalizing the same they charge to p&l a/c of the current year ,is it right or not...?
AND
when the amt.incurred for repairs & maintenance of the fixed assets should be capitalized.
i'm doing audit of our client & during the audit I've got the point that they incurred the an amt.Rs130000 towards repairs& maintenance of factory building, instead of capitalizing the same they charge to p&l a/c of the current year ,is it right or not...?
AND
when the amt.incurred for repairs & maintenance of the fixed assets should be capitalized.
13 June 2012
Repair & maintenance will be charged to P&L as it is NOT a capital expenditure.
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